Industry pioneer urges local development of
Nebraska wind farms
Nebraska farmers are sitting on a resource that could turn into
a valuable cash crop with the potential to revive the state's
rural communities—if they plant locally, a wind development
pioneer told the Nebraska
Farmers Union at its state convention in Grand Island, Neb.,
last December.
NEFU invited Dan
Juhl, owner of the wind energy development company DanMar
& Associates, Inc, to present "Farming the Wind:
The Minnesota Wind Power Experience" at its 90th annual
meeting. "The union's position is that as a nation, we
need to develop more secure, environmentally friendly energy
sources that use agricultural commodities," said President
John Hansen.
"We've focused heavily on ethanol production, biomass
and soy diesel, but it's time to turn more attention to the
state's wind resources. Nebraska could be producing a lot more
wind power."
Small wind projects strengthen
local economies, power supplies
According to the American Wind
Energy Association, Nebraska's wind resources rank sixth
in the United States, with the potential to generate an average
of 99,100 MW annually. So far, the state has tapped only 14
MW of that power, although Nebraska
Public Power District recently announced plans to build
a 30-MW wind farm near Ainsworth, Neb.
Large wind farms are only one option for harnessing
the state's vast wind resources, said Hansen. "By spreading
individually owned wind energy throughout the region, we can
develop wind power in a way that helps the family farm."
Juhl shares Hansen's conviction that local development
maximizes the benefits to rural communities. "When locally-based
landowners build small wind projects using local contractors,
and either use the power themselves or sell it to their utility,
it strengthens the local economy," he said.
What is good for a utility's customers is good
for the utility. Such distributed generation projects make the
power supply more secure and rarely require complicated interconnection
arrangements. "Small units produce power close to the
load that can be consumed by a community before it even enters
the transmission system," explained Juhl. "That
makes dispersed generators easier for small utilities to manage
and it makes renewable energy more affordable."
Tax incentives make wind power more cost effective,
too, but as Juhl pointed out, those programs are not open to
public power providers. "Community-based development groups
can take advantage of the credits, though," he observed.
Minnesota policy offers model for supporting
local wind development
To create a favorable environment for local wind development,
Hansen believes that groups like NEFU must educate their legislators,
their utilities and their own members about renewable energy
issues and benefits. "Everyone needs to know what the
options are so we can recognize the opportunities," he
said.
NEFU energy policy supports the development of
wind energy for rural economic development, and the organization
is actively involved in discussions at the state and national
level. Hansen said that his organization is also encouraging
the state to adopt the Minnesota model for financial
incentives for renewable energy development.
Key provisions in the Minnesota policy include
a 10-year small producer (2 MW or less) production incentive
of 1.5 cents/kWh for nontaxable entities or a 1.8-cent tax credit
for businesses. Wind energy systems receive a break on property
taxes, too. "The law recognizes that the system has a
greater value to the community than a little more property tax,"
said Juhl.
State legislators and public utilities worked
together to develop a standardized power contract for small
projects. Measures like simplifying the negotiation process
provided a huge boost to local development, Juhl noted.
Local providers can play role in small wind
development
Municipal utilities and rural electric
cooperatives can support local renewable energy, too, by making
contracts available to their members. "A lot of small utilities
have economic development funds to help establish small businesses
in their territories. Why not consider a wind turbine the same
as any other small business producing a saleable commodity?"
Juhl suggested.
Under Minnesota's renewable energy policy, the
state currently produces 425 MW of wind energy that pours nearly
$500 million annually into local economies. The Nebraska Farmers
Union would like to see the same thing happen in its state.
"Advances in wind technology have made small projects
increasingly viable and it keeps getting more competitive all
the time," Hansen stated. "It's not just good energy
policy now; it's good domestic economic policy."
"Wind is a mature, efficient and reliable,
but nondispatchable source of clean energy," Juhl added.
"Small wind generators can and should play a big role
in powering our rural communities."
